As the demand for cannabis legalization increases internationally, Canada has the opportunity to become the world leader in cannabis exports. Canada is the first G7 country to legalize the consumption and procurement of recreational cannabis and has the first mover advantage to build rapport overseas. It’s projected that international cannabis sales will reach $35 billion by the end of 2022. Today, Canadian licensed producers (LPs) with the proper certifications and permits can only export cannabis for medical and clinical research purposes. Some larger Canadian cannabis producers are turning to the medical cannabis market as the recreational sector experiences turbulence.
The European Union is proving to be a lucrative market for Canadian exports as more EU countries choose to legalize cannabis. Germany imported a record amount of cannabis for medical sales and scientific use in the first half of 2022, making it the EU’s biggest market. Canada is the top export partner of cannabis in Germany, exporting 6,493 kg in 2021, but due to recent legalizations in neighbouring EU countries, Canada’s market share in Germany’s imports is diminishing and some of Canada’s larger players have been outsourcing their production and then exporting to Germany.
In Canada, the recreational sector has an oversupply of cannabis. “What we’re seeing is an oversupply – we have way too much cannabis in Canada today. People are carrying it on their books and their inventory, they’re selling it at bottom low prices just to get cash in the door or they are destroying it,” states CCXs Erin Butler.
It is estimated that 425,325,000 grams of unpackaged cannabis were destroyed by LPs in 2021. As for the product that is packaged, the amount sitting in corporate inventories far exceeds the amount sold. One proposed solution for the oversupply issue is to funnel funds from the cannabis excise tax back into the industry to help producers export their products rather than destroy them.
The Canadian Cannabis Exchange (CCX) has several international export opportunities and is looking for Canadian or global cultivators and processors with GMP, EU-GMP, or GACP certifications. If you are prepared to make your first international deal with the help of our live cannabis brokers, please contact info@canadiancannabisx.com.
